Do I need to Pay Taxes on my Stimulus Check?
If you can recall back in May of 2020, individuals and families began receiving Economic Impact Payments. You may have been one of the recipients of this payment from the federal government. The payments came after COVID-19 cases began to rise, businesses began to shut down and the virus caused imbalance and financial chaos for people all across America. Even more recently, a second stimulus check was dispersed and many began receiving those funds in December 2020.
As many Americans accepted these checks to help offset the loss of income and unexpected expenses, a burning question began to arise. Many of those who received the funds wondered if they’d be responsible for paying income taxes on the stimulus checks. The answer is, no! The stimulus check will not factor into your income tax liability. Nor do stimulus checks factor into the size of your tax refund.
Ready to start your 2020 taxes? It’s been a crazy year and so many people have unique tax situations. Contact us today for help with your 2020 taxes and to receive your free consultation!